A
AcadiFi
LI
LimitAlgebraStudent2026-05-23
cfaLevel IIIPrivate Wealth ManagementMath Foundations

Why is "pulling the constant out of the limit" a valid algebra step in deriving the infinite geometric sum?

The lecture derives $S_\infty$ by pulling $a/(1-r)$ out of the limit operation as a constant. Why is that legal — isn't the limit acting on the whole expression?

112 upvotes
AcadiFi TeamVerified Expert
AcadiFi Certified Professional

It's legal because of a fundamental property of limits: the limit of a product equals the product of the limits, provided each limit exists.

The formal rule:

limn[f(n)g(n)]=limnf(n)limng(n)\lim_{n \to \infty} [f(n) \cdot g(n)] = \lim_{n \to \infty} f(n) \cdot \lim_{n \to \infty} g(n)

If g(n)g(n) is a constant (doesn't depend on nn), then limg(n)=g\lim g(n) = g, and the rule becomes:

limn[gf(n)]=glimnf(n)\lim_{n \to \infty} [g \cdot f(n)] = g \cdot \lim_{n \to \infty} f(n)

Applied to the geometric sum:

Sn=a1rn1r=a1r(1rn)S_n = a \cdot \frac{1 - r^n}{1 - r} = \frac{a}{1 - r} \cdot (1 - r^n)

Here a/(1r)a/(1 - r) is a constant (doesn't involve nn). So:

limnSn=a1rlimn(1rn)\lim_{n \to \infty} S_n = \frac{a}{1 - r} \cdot \lim_{n \to \infty} (1 - r^n)

If r<1|r| < 1, then limrn=0\lim r^n = 0, so lim(1rn)=1\lim (1 - r^n) = 1.

Therefore: S=a1r1=a1rS_\infty = \dfrac{a}{1 - r} \cdot 1 = \dfrac{a}{1 - r}.

Loading diagram...

Why this is non-trivial:

The rule fails if either limit doesn't exist. For example, if f(n)=(1)nf(n) = (-1)^n (oscillates between ±1\pm 1) and g(n)g(n) = a constant, then limn[gf(n)]\lim_{n \to \infty} [g \cdot f(n)] does NOT equal glimf(n)g \cdot \lim f(n) because limf(n)\lim f(n) doesn't exist.

In the geometric series case, lim(1rn)\lim (1 - r^n) exists (it equals 1 when r<1|r| < 1, or doesn't exist when r1|r| \ge 1). So we can only pull the constant out when convergence holds.

The "pull the constant out" intuition:

A constant is just a number that doesn't change. When you compute a limit, you're asking "where does the expression go as nn grows?" A constant doesn't go anywhere — it stays put. So multiplying by a constant just rescales whatever the limit is.

For an analogy: if your bank balance grows by 5%5\% per year, the growth rate is independent of the initial deposit. Pulling out the initial deposit (the constant) doesn't change the growth pattern — it just rescales the final number.

Why students get confused:

The notation Sn=a(1rn)/(1r)S_n = a(1 - r^n)/(1 - r) hides the structure. Once you rewrite as Sn=[a/(1r)]×(1rn)S_n = [a/(1-r)] \times (1 - r^n), it becomes obvious that the first factor is invariant under the limit operation.

This is the same pattern as taking E[cX]=cE[X]E[c \cdot X] = c \cdot E[X] in probability, or cf(x)dx=cf(x)dx\int c \cdot f(x)\,dx = c \cdot \int f(x)\,dx in calculus. Pulling constants out is universal in linear operators.

For the exam:

You don't need to derive SS_\infty from first principles. Memorise S=a/(1r)S_\infty = a/(1-r), know it requires r<1|r| < 1, and recognise the algebra step when you see it. But understanding the derivation makes you more confident handling unfamiliar formulations.

📊

Master Level III with our CFA Course

107 lessons · 200+ hours· Expert instruction

#geometric-series#limit#linearity#derivation#cfa-level-3